HTC is considering a major overhaul of its distribution strategy which could see it sign a distribution deal with Micro-P.
If the deal goes ahead, Micro-P could either be taken on alongside HTC’s existing distribution partners Ingram Micro Mobility and Tech Data Mobile, or could replace one or both of these companies.
The move follows a swingeing review of HTC’s distribution channels as part of the manufacturer’s drive to claw back marketshare in the UK after continuing to lose ground to rivals Apple and Samsung.
Despite launching one of the most highly rated smartphones of the year - the HTC One - the Taiwanese phone maker is still failing to stem falling sales. It recently reported its first ever quarterly loss.
Sources said the manufacturer’s UK distribution review was prompted in part by concerns that HTC’s devices are not being promoted forcefully enough by its existing distribution partners.
One said: ‘HTC has been reviewing its distribution strategy for some time. There is a feeling that its devices are not as front of mind as they would like them to be with their current partners.’
Another source said: ‘HTC is looking for a new distribution partner and Micro-P is seen as the favourite. It needs to do something radical to get their devices out there as it is so competitive. Micro-P has a reputation of thinking out of the box. That’s what [HTC] needs.’
While one possibility of HTC’s distribution plans could be to go exclusive with Micro-P, some industry sources claimed the distributor does not have the sufficient reach to give the business what it needs. One said: ‘[Micro-P] is good at what it does and would bring more cut through in the UK and Ireland but it is not strong enough for HTC in Europe.’
Any success in bidding for HTC’s distribution work would be another major coup for Micro-P. The distributor clinched a deal in August this year with Sony Mobile to become an official distributor of its mobile devices, joining 20:20 Mobile, Data Select and Ingram Micro Mobility. Micro-P was also chosen as Nokia’s distribution partner in October 2011, replacing 20:20 Mobile and Data Select, whilst still a relative newcomer to the mobile distribution scene. At the time Nokia said it had chosen Micro-P for its innovation.
As Mobile went to press Simon Woodman, Micro-P’s head of mobile, said: ‘Micro-P has not done a deal with HTC.’
An HTC spokesman said: ‘HTC doesn’t comment on rumour and speculation.’
Author: Carol Millett